Perplexity Teams Up with Microsoft for AI Expansion

AI startup Perplexity has signed a $750 million deal with Microsoft to use its Azure cloud services, Bloomberg News reported on Thursday (January 29, 2026).

The agreement will last three years and gives Perplexity, which is backed by Nvidia, the ability to run a variety of AI models through Microsoft’s Foundry program. This includes AI systems from OpenAI, Anthropic, and xAI, according to the report.

With this deal, Perplexity can process large amounts of data faster and improve its AI services. The company can also test new AI tools and build advanced applications more efficiently.

This partnership is seen as a major step forward for Perplexity, helping it expand its technology and compete with other AI companies in the fast-growing industry. Microsoft’s cloud platform will provide the startup with the computing power and infrastructure needed to support complex AI systems.

Industry experts say the deal reflects the growing trend of collaboration between AI startups and big tech companies to speed up innovation and reach wider markets.